Sugar recovers in futures trade on tight supply

NEW DELHI: Sugar prices recovered by 0.70 per cent to Rs 2,607 per quintal in futures trade today, supported by tight supplies in the spot market by millers.

However, increase in output limited the gains. At the National Commodity and Derivatives Exchange, sugar for delivery in April traded Rs 18, or 0.70 per cent, higher at Rs 2,607 per quintal, with an open interest of 32,270 lots.

The sugar futures prices for delivery in May also rose by Rs 9, or 0.33 per cent, to Rs 2,700 per quintal, with a business turnover of 18,520 lots.

Analysts attributed the recovery in the sugar futures prices to tight supplies in the spot market.

However, higher output estimates, capped the gains, they added.